Needham analyst Chris Pierce has reiterated their neutral stance on LCID stock, giving a Hold rating yesterday.
Chris Pierce has given his Hold rating due to a combination of factors impacting Lucid Group’s current and future performance. The company is showing positive momentum in its vehicle deliveries, particularly with the upcoming launch of the Gravity SUV, which is supported by increased advertising efforts. However, the recent announcement of leadership changes, with Peter Rawlinson stepping down from his roles as CEO and CTO, introduces a level of uncertainty about the company’s strategic direction.
Moreover, while there is optimism about the near-term unit trends, the timeline for achieving positive gross margins remains unclear. This uncertainty is compounded by the company’s current scale, which suggests that reaching these financial milestones may not be imminent. Given these considerations, Chris Pierce maintains a Hold rating, reflecting a cautious outlook on the stock’s valuation and future growth potential.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $2.00 price target.